Banning of crypto currency operations by CBN a right decision- IMF

The International Monetary Fund (IMF) has backed the Central Bank of Nigeria, on its plan to ban crypto currency transactions in Nigeria.
IMF said that some elements are using crypto currencies to engage in money laundering and drug trafficking.
The IMF Resident Representative for Nigeria, Mr. Ari Aisen, disclosed this during a virtual briefing on the recently published 2020 Article IV IMF Staff Report for Nigeria.
Aisen said that like CBN, many central banks around the world, have taken similar decision.
His words: “The issue with some of the crypto currencies is that perhaps some care should be taken about their activities. The use of crypto currencies is a concern. That is why some central banks, not only in Nigeria have these concerns about what kind of the activities these crypto currencies are put and how best to monitor those activities.
“Some of them may be illegal activities and may be related to money laundering, even drugs or other illegal things. It is natural that the monetary authorities will be concerned about how best to supervise and increase their oversight regarding the use of crypto currencies.
“The CBN is thinking closely about its trade-offs and is trying to design the best policy in the interest of the payment system and the sustainability of the financial sector.”
The IMF top official said that there is need for the “unification of foreign exchange rates,” to make the management of foreign exchange (forex) more transparent and efficient.

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